Competitive Analysis is done 2 ways, by differentiation (creating a fundamentally different product) and positioning (Finding how our product fits into the minds of our customers).
Positioning can be done in three steps - 1) Finding the dimensions of our comparison, 2) Understanding how we fare in relation to our competitors, and 3) Understanding where the GAP lies. The goal is to be slotting your product in the mind of the customers and away from the competitor. The questions you want to be able to answer are:
1. Who is my target market? The specific audience I am trying to reach. This can be done through segmentation and then targeting to find the most profitable market.
2. Who am I? The product and service that you provide and the value that you add to the consumers.
3. Why Buy Me? Because our product will help you achieve your goals and will make your life easier.]
4. Why not the competitors? Among other competitors, you should buy our product because of any number of attributes ( price, service, brand, celebrity endorsement, convenience, utility)
Categories for Positioning a Product (thought not on the positioning map)
- Product Quality: "Fastest processor and best specs"
- Class of Users: Burberry plays up the "High end and hip look"
- Owning the category: Ipad- there's the one and only and nothing really like that
- Against a Competitor: "I'm a mac and not a dopey PC" - Subway "Eat Fresh" unlike unhealthy fastfood joints
DO NOT DOS for Positioning (Positioning Traps)
- Unimportant Attributes: If burberry, do not position based on variety of color
- Wrong Attributes: Instead of Diet Beer, do light beer, because people want to drink more
- Someone else's Benefit: Microsoft can't do sleekness and design because Apple is so good at it
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